Latvian authorities seize $8.7 million from NFT artist

The Latvian government has seized money from an NFT artist.

The Latvian government has seized funds from an NFT artist. Authorities call it money laundering, but the artist defends himself.

Ilya Borisov is an artist from Latvia. Under his pseudonym "Shvembldr" he sold digital images during the NFT hype for nearly $8.7 million. To pay taxes on his profits, he says he contacted local authorities. They advised him to pay taxes on NFT profits as "income from self-employment." He then paid $2.2 million to the Latvian state.

In February this year he was startled when Latvian authorities froze all his assets. The charge: money laundering. Borisov defended himself legally. He obtained termination of the investigation and withdrawal of the seizure of his NFT sales from the Riga District Court, but authorities did not implement this.

Instead, two new proceedings have been initiated against him. Again on suspicion of money laundering. Borisov appealed, but so far without success. The NFT funds remain frozen for now.

Furthermore Latvia has set up a own website where people can follow the timeline of events. Borisov says he not only wants his money back, but also to save other NFT artists from a similar fate.